time for the final trade. mike? >> a lot of calls trading aig. still cheap to tangible book so, i think that's a good play. >> going to watch brian on thursday and i'm going to sell eem, which has had a great run. >> keith? >> looking for stocks to buy that have already gotten down multiple times. long fedex. >> aig. >> brian? >> i like platinum pplt. >> i'll see you tomorrow at 9:00 a.m. don't got anywhere. i'm jim cramer and welcome to my world. "mad money," you can't afford to miss it. hey i'm cramer welcome to "mad money." weath other people want to make friends, i want to teach you. call me at 1-800-743, cnbc.

i came back from washington and i got good news and bad news. the good news they want to rise above the bad news, the republicans want to rise above tax in cricreases and the democ want to rise above spending cuts. but this morning rally, the averages got pulled down when harry reid said there probably won't be a deal in time for christmas. the nasdaq climbing 1.8%. i hope this mini rally is happening because people have looked over the fiscal cliff and weren't terrified by what they saw. i hope they don't mind government intervention.

because they are not going away. i hope that because what i heard in washington today were two sides even though i can tell them that a deal would be done and there would be no vacation without legislation, we'd be in much better shape. i have to tell you, the situation in washington is as discouraging. one after another i started with a too tack. i said let's go there. i said i totally agree the issue of spending not revenues. tell us what you have done to get spending done. did they give you the fellow traveler ideas? no. they attacked the president. each time when i asked for ideas on what to cut. like right now.

like every other country in the north does, like pulling back on positions from our army. i got the same response. it is the president's fault. i might have well have been a mannequin. they he want to talk about raising taxes of the rich. but it can't be dismissed as part of the mosaic that will get the government out of the commission at all. they think they are so darn important down there. they think they start or done start businesses because of them. i started five of them, i know. our politicians think they don't spend because they have taxes. but they put people to work if there is demand and they think

they can make a lot of money. they would rather save than spend. research is issued to death. what are they down there? >> honestly. if you raise taxes and lowered spending, we would be on top of the world. our stock markets would sore. and the level of wealth creation would beyond washington's wildest dreams. instead, i have a new scenario. we have to take a page from dr. strange love. we have to love the fiscal cliff. the leaders i talked to today know their actions will take us over a cliff. i understand there is now perception among the media. the no tax increase republican ares regard the stance as a

birthright. a guy that is so anti-spend that he seemed to care more on these issues and more about the accountability for the disaster relief money. i can't believe that. but a lot of guys down there will do anything to prove a point. but i can tell you there are enough garrets to force us over the cliff. given that the garrets are over there. got a question either people don't know about the cliff or they believe that the deal will be done. and they that they have fulfilled the nor quist pledge.

where were the republicans when they cut taxes from the chinese two, why didn't republicans press for spending cuts when the president extended the tax cuts? and why doesn't the president offer spending cuts to medicare and defense and social security? how about weapons programs that don't fit in the terrorism world. how about foreign aid and maybe trying to be helpful, i'm sure some of today's rallies are based on the believe that say some of today's rally is better than tomorrow. but what, he is the fed chief. the levels of purchase have gotten insane. but bad for those who have been

buying stocks. they are confident that they will keep rates low. it will run up into the fed statement and you might as well wait for the market to come in. we will be back on cliff watch. it is that i have a bunch of politicians to agree that there should be no vacation. or they are getting our critical message on this issue. maybe everybody i spoke to is ready to rise above these labels. time to avoid the cliff. that is a prescription for the wealth creation that is dependant upon washington's policy. here is my bottom line. and then we bounce back. when republicans can stick by the pledge. so we have to ask yourself can you handle the intrusion from washington in your portfolio? if you can't, no one will blame

you for selling. manny in georgia, manny? >> jim, how you you doing? >> i'm real good how about you? >> i'm doing great. bearing any down turn. would delta buy a 47% stake? >> i'm not going to talk about that. the airline stocks are real good. people trying to move a little on delta. wer is alaska air.has staying it is the best of a bad situation but i like good situations. let's go to gregory in maryland. >> booyah from the crab cake state jim. >> i love phillips. >> they are still there. >> i have a question for you. i called you about spectra

energy. today with the acquisition of the pipeline and the 9% dividend what do you think i should be buying? >> i like spectra. can i state that i think that kmp is a good opportunity down here? >> that got hit real bad. i would snap that one up in a heart beat. let's go to jack in new york. >> booyah from brooklyn. >> i'm going to be there later this evening, we should hang out. fedex is reporting better package shipments. do you think that will carry their shares into the next point? >> we were going back and forth after a frustrating day where dollar general blew up.

maybe that wasn't such a good day yesterday for federal express and for urgent mail. but we are holding onto it formal. every stock has been tipping itself lately. you know, i like companies so much more than congressmen. it is going to be hard for democrats and republicans to compromise. i cannot blame people for being cautious. i did get a lot of good vibes about no legislation and you know what, i learned that i think ceos are better. "mad money" will be right back.

but investors cooled on the stock and sent it's shares into the fryer, is this a value meal or has wall street lost it's appetite for fast food. just ahead. all coming up on "mad money." [ male announcer ] at scottrade,

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everybody is waiting for the fiscal cliff. i went down to the capitol this morning to see how things are progressing. i got more negative when harry reid said it is unlikely that a deal will be done by christmas. i'm thrilled to have senator john hovan, a republican from north dakota who has been an advocate here with us tonight. welcome back to "mad money." >> jim, good to be with you. >> i noticed that you are for a bipartisan situation and one of

the things that tells me that you are for real is that you have not signed a pledge that would make it so that you cannot vote for a tax increase. it should be a big deal on the order of four trillion dollar over ten years. get growth in our economy and the kind of deal that inincludes tax reform and better spending control. >> when you were governor of your state you previded over what i think is the single greatest employment boom. is washington so different that you wish you were back home? >> you have been out to north dakota, but you are right. the fundamentals don't change.

certainty we can put those things in place with a big deal. we need to get it done. >> one of the things i was noticing. this is something fellow senator conrad was talking with me about. i know that you are committed and in a sensible way to fix the tax code to fix the loop holes. the mortgage debt relief act of 2007 which allows borrowers to pay the debt. your biggest problem is you can't get people to come from other states to fill the jobs because they are under water in their mortgages. you are trying to close something that could help your state. you are right on. when we talked about closing loop holes and reforming in a pro-growth way, the real revenue comes from economic growth. that is what happens where we

have billions in reserves. we actually cut taxes. but through a code that is certain and fair and makes sense and the revenue comes from economic growth. that is what we need to do as a country. >> i got confused today. trying to stay with medicare and social security. he is still paying into social security. i'm baffled. is social security an entitlement? >> it is something, it is a retirement system that our citizens are owed because they pay into it. i think we can reform all of them in a way where we don't change it for the people that are at or near retirement, but for younger folks we make

bipartisan changes and i think everybody can agree on that. >> are you hearing anything from the president that can agree with that? >> we need leadership on that right now. the president needs to say yes, we can do these things. we need to do it now for the good of the country. >> are you optimistic that can occur. i'm going to keep pushing for it every single day. this is about what the american people want and need. >> one last question. you are pro growth and i have seen in action what you have done. is there a failure of imagination and a way to raise revenue that would make it so that we wouldn't have to raise taxes and could have more money?

>> we have incredible opportunity in energy. we can do that throughout the country in many different ways. we have to unleash the energy of this great country and we do it with the things that you and i have been talking about. that is what is going to make the difference for this country. and energy is a big part of it jim. i know what you have done and i'm proud of what you have done. because it could happen in more states, there is more oil than just in north dakota. and come back anytime. we love having you out there again. thank you so much. good man, thank you for being on the show. >> it has to do with spirit people, there is no rancor there.

pro growth gets the job done. after the break. i'll try to make some money. >> coming up, holiday hustle. while the registers are ringing in some shops. others are left out in the cold. tonight he has a look at the luxury shopper with the ceo of sacks 5th avenue. can i help you?

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the ultimate high-end department store, 11 of the stores had to be shut down for days. including the flag ship store in

new york city. let's check in with the chairman and ceo of sacks. the stores have good values. welcome back to "mad money." you said people shop the sacks depending on how they feel about their net worth. that is what is looming out there. in terms of an over hang in the market. >> the whole 1% that changed the tax code. nearly as important as what they feel like in terms of their psyche. >> absolutely. i think that one of the rates

goes up and how does it react to getting some form of an agreement. i think that our customer can adapt to an agreement. >> let's talk about hurricane sandy. you were very, you know, wow, it was tough to talk about hurricane sandy. terrible loss of life. right after this, deutsche bank met with you and said despite sandy, things are pretty good. well look, i think there is the over hang in the environment. sandy was a punch to the stomach. people weren't shopping online because there was no electricity. at the time of the conference

call we saw an uptick in the business. we said that the impact of the storm was going to take us to a performance. and i feel optimistic for the length term for our consumers. why is classicclothing not selling well but contemporary. is there any accounting for taste? >> well, look. people love what they love. accessories have been performing very well. people love something that is new. something that is the same that they have in their closet. it is not just about accessories. fashion forward is setting very well. it has to be something that they

are perceiving as being new and different. when i look through, i felt that we had the real turn in this quarter. i feel that you talked about the omni channel and the internet. these are real growth vehicles. omni channel is the buzz word but it is different. you have to have the system and you have to have the capabilities to service the customer. we are investing over $100 million. i believe it is going to change the business. the outlet business is another growth vehicle.

i think it is an opportunity. >> you reference the chinese shopper. it looks like we solved this. there is a lot of chinese people shopping. do you go there and let them know about sacks. i think there is an opportunity that is on tap. it is one of our fastest growing customer bases. we are seeing a slowdown. i believe that we need to do some marketing in china. we need to see the destinations of the world. >> i was recently at a competent ter of yours. they had mark downs on warm weather clothes. >> cold weather clothing bought of the heat, the warm weather is

having an issue. it is a small piece of our business. but hopefully it is going to get cold again. >> i have to tell you, i wish you the best of luck. it sounds like despite the plagues, things have been doing pretty well. this means a very good call on if you believe the stock market is going to go higher. you heard it from the man. stay with sacks, stay with cramer. >> coming up, are you ready to get charged up? cramer goes electric on a hyper active lightening round. well, if it isn't mr. margin.

mr. margin?

don't be modest, bob. you found a better way to pack a bowling ball. that was ups. and who called ups? you did, bob. i just asked a question. it takes a long time to pack a bowling ball. the last guy pitched more ball packers. but you... you consulted ups. you found a better way. that's logistics. that's margin. find out what else ups knows. i'll do that. you're on a roll. that's funny. i wasn't being funny, bob. i know.

it is time for the lightening round. and they the lightening round is over. are you ready? i want to start with ed in pennsylvania. ed, hello mr. cramer.

booyah from pittsburgh. >> oh man steeler nation what's up? >> csbo. crishri cisco is the best house in a tough neighborhood. so i'm saying don't buy even though i know it is cheap. >> let's go to jeff in new jersey. >> jim, mark west energy is nearly down 5% this week. should i add and worry about their chronic secondary offer? >> i like we and then it sprung up and this is no kmp. let's go to josh in

massachusetts. i'm going to give you stop confusing me. happy hanukkah. and merry christmas to you. >> thank you. >> my company is jeers logic. i love them and i know they are in bed with apple. and how do you feel? >> it has had such a big move. if i want to own an apple play, i'm going to stick with apple. let's go to mark in wisconsin. >> jim, thank you for taking my call. your thoughts on parker drilling. >> no no no no no we don't need parker drilling. let it come up and ka ching. i like to go with slob.

how about jeff in illinois? >> happy holidays jim. thank you for taking my call. i have been wlhistling to the g agriculture sector. >> those are both good companies. right now i prefer montana a little bit. but those are biotech companies that are seed companies. i'm not done. i'm going to phillip in arizona. >> hi jim, what do you think of alcoa at this point? >> it is a both stock trapped in the commodity. it is going to have to wait. let's go to patricia in hawaii. >> yes, i'm here.

yelp, i bought it at $21. >> hold on to it. i think it is worth more. don't sell yet. >> let's go to stewart in new york. >> how you doing. i love you like the giants and i have a winner for you for next year. >> well, um okay. it is okay. frankly, i prefer others to it. um, for instance, i would even prefer chesapeake to it right now. and that says a lot. i was going to do my stanford invitation. it gets better. here take this. it is the conclusion of the lightening round.

coming up a world away. investors cool the stocks and send the shares to the fryer. has wall street lost it's appetite for fast food. just ahead.

nobody is more passionate about the market than i am. you are why i come out here and do this show. >> the stuff that you are doing is so important and i want to say thank you. >> we watch every day and we count on your help for small investors like us. >> put cramer's experience to work for you. "mad money" week nights on cnbc. >> what are we supposed to do with young brands.

until weeks ago. it was perceived to be a fantastic growth story. where kfc has been so popular. on november 30th young came out with a forecast that came out with a forecast that how they got their changed. the company's forecast from china has hideous. given that china has been the big driver. stock falling nearly 10% in a single day. and all downgraded the darn thing. now to last thursday. at this meaning. they created a more bull issue

picture. and the non china business. and they reiterated their positive use on the stock. $17 what the stock is now. so now you know what we've got. we have a genuine home spun face off. with a pack of bears duking it out against a whole posy of bulls. which group is right about young? sell sell sell. we know the business is turned around. taco bell, haven't been there lately? hearing good things. all of the over seas business is still growing like crazy. the chinese business is so big

that it accounts for 49% of the company's profits. the latest decline of the same store sales is permanent. they got sick of kentucky fried chicken and pizza hut. it seems as if the colonel may have gotten busted down to private. and i'm calling it a bump but a severe bump in the road. it is true that they are facing pressure. the so called tier one cities. 4% decline in sales is not a good thing. and there is no doubt new found competition among chicken houses. however, young is dealing, you know with the first issue by shifting emphasis towards china

and as far as the decline from same stores sales go. last year comps were up 21%. the management was bullish about the longer term. the cea said if the sky is falling in china. i promise i will know about it before you. definitely have a better read on china than we do. i think it makes sense to give him the benefit of the doubt. but now it is beginning to turn the corner. plus the chinese communist party has new leadership. through 2020 while doubling per capita income. so i have to believe the chinese

government will do whatever it takes. maybe the colonel is due for a battlefield promotion. but they are not the company to sit around and improve on its own. they suggested that the business would turn around and the movement for the smaller cities would be terrific. much of the competition, for example, in the big tier one and two cities. they have 2176 competitors. but in the smaller cities, 1167. as far as i'm concerned, young's real problem is not china. there is young's fast growing cities and then there is the slow growth domestic business. for the last year the company

has shut down more stores than it opened. i'm saying right here right now give me a fee if it happened. do you think that is nuts? that is what algea did with phillip morris are. fast growing international one and they decided to break up. and the growth stock in the form of phillip morris. i think young should be the same thing. the business is sizzling. and now that taco bell has turned things around. i think that the domestic business has enough to turn around as well. right now, young trades at 18 times the earnings. if you split up the break up, i

think it will get a higher multiple to the point where the sum of the two parts might be more per share. look, even if young doesn't break itself up. china is going to resume it's long march upward. to me it seems like a recipe for a higher share price. i think the bulls were right and the bears were letting a chinese speed bump from what i regard as a great story. it would be great if it saw it self as a great break up. my proposal for young could create instant profits for all aboard. let's go to stafford in oregon.

>> how you doing today? >> i'm good. my question is regarding x mcdonald. do you think it is a buy down at these levels? >> yes, i do. they had a miss step there. they weren't sure. they are back to doing innovation. i don't think it is going to run away from it. but i think it is fine to own. let's go to dean in new york. >> good, i have a question about kc's general stores. they came off the 52 week low and the earnings came out today. and i want to know, do you think they are on the rise or what do you think? >> boy, that has been one i have not liked. but that is a good report. this is one of those i have to look at it again. i'm only used to seeing bad

numbers from them >> i'm looking at any coal right now. she is all over it this week. hungry for profits. the only thing that can make it better for everybody is splitting the baby in two. "mad money" is back after the break.

i got into a heat ed tiff today with a congressman from new jersey. the endless mention of solar stuff. the government has been trying to pick winners take ethanol. it was a fuel that no one likes to use. you use up water and government

subsidizes all sorts of farms and that is a winner right? >> you think we would have a huge food stamp program because of poverty? this time we saw the completion of the most successful government intervention i've se seen. the rescue of aig. >> second, aig guarantee d the success and trades it back to firms like goldman sachs. although they probably denied that. who cares about goldman right? >> everyone should have cared. we would be in the thick of the great succession. simply because the government let aig go under.

now the government has reaped the $27 billion profit for its own. it was well, it turned out to be a savvy investment. i mean, whatever happens to get you elected into a higher office. and then he seemed to attack me for being pro the government with aig. i want to thank two people who made sure the government took care of this situation here. he prthe government did multipl offers of aig. this one was the best of all. the second person, aig ceo. this company had almost been

destroyed. and through force of will fixed the darn thing and turned it into more of a powerhouse before the crash and it isn't done. this time it was done between the two of them. a warm and heartfelt thanks. that is what we care about. stay with cramer. >> it is a brutal full contact sport. >> when the whistle blows, traders trading for what could turn out to be the final play of the game. >> i know it is not easy but i promise to keep fighting for you. the. >> the road is a tough one. but the pay off can be a great

one. >> next, the employee rights takes a huge step forward. why larry says right to work is the right way to go. and we can save you 10% on ground shipping over the ups store. look this isn't my first christmas. these deals all seem great at the time... but later... [ shirt ] merry christmas, everybody! not so much. ho ho ho! this isn't that kind of deal. [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day...

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oh, just diagramming this accident with my state farm pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm. more mobile than ever. get to a tonight on the 4th anniversary of mastermind bernie madoff don't miss it on 60 minutes on